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Archive for March, 2010

Is Steven Keough, Whistleblower, a Criminal?

March 28th, 2010

Apparently.

This is a very astute comment made by “bildo69″ on the Star Tribune web site.

Former iNetGlobal CEO Steve Keough

Former iNetGlobal CEO Steve Keough

Pretty Sad how the whistleblower wanted severance

He (Steven Keough) was a whistleblower, claiming he knew it was a criminal enterprise, but he was demanding a severance paid by illicitly gained funds?

No matter how you cut it -  no matter the outcome for iNetGlobal in the USA Court - innocent or guilty, Steven Keough committed a crime.  In his short tenure at iNetGlobal, he learned ONE OF THREE POSSIBILITIES, AND THOSE POSSIBILITIES ARE MUTUALLY EXCLUSIVE.

1)  Keough learned little or nothing about iNetGlobal, therefore could make no determination of guilt versus innocence.

or

2)  Keough learned plenty about iNetGlobal, and the fact that they have valuable and powerful internet marketing products and services, and make real profits, thus making it a lie to accuse the company of a Ponzi Scheme.

or

3) Keough learned plenty about iNetGlobal, to the extent that he could make a judgment that he could blow the whistle and convince the USA Government that it is a Ponze Scheme.

__________________________________________________________________

Assume for a minute that #1, above, is correct.  Then Keough commited a crime.  As acting CEO, Keough had the opportunity and the responsibility to learn more, to work on fixing the areas that might be of concern to him, and to help people throughout the organization understand the importance of knowing about the products.  After all, one of the big concerns was and is (to the iNetGlobal critics) that there were lots of non-English-speaking members.  Keough represented to the iNetGlobal members and staff that he was fluent in Chinese.  Also, remember, the iNetGlobal web site has the option available to be read in Chinese.  His crimes, given Possibility #1 –  plentiful, not the least of which is dereliction of duty.

Now let’s assume that Possibility #2 is correct.  The obvious conclusion, given this is correct, then Keough lied to the USA Government.

Finally, let’s assume that Possibility #3 is correct.  Give this possibility, then Keough is obviously guilty of the crime of attempting to extract, or extort, “illicitly gained funds”, –  a point so aptly declared by “bildo69″ with his comment on the Star Tribune blog.

Unless I am missing something, a criminal case against Steven Keough appears to be an “open and shut” no-brainer.

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A Perspective About U.S. Government Vs. iNetGlobal

March 28th, 2010

I have wondered, “what is the ‘big rub’ that caused the U.S. Government to raid and seize the assets of iNetGlobal”?  For many decades I have wondered about a lot of things that the USA does, and now at a ripe age of 67, my experience with being close to the iNetGlobal situation puts a few things in perspective for me.

It now occurs to me that there are two major forces that have led to this raid.  The first of those forces is the fact that the USA Government has been, for decades, slowly but surely trending toward Socialism.  Their desire to “level the playing field” rings loudly sweet with a large demographic of today’s American.  That particular demographic has been spoon-fed with welfare, with free education, –  with all kinds of perks that much of the world’s population does not receive from their respective governments.  One can argue that this is the great thing about America.  Perhaps they are right, but I beg to disagree because I believe that it has resulted in an unhappier America, not a happier America.  Controversy abounds in almost every facet of our lives today in America.  I for one should be feeling happy and free, but I do not.  It is not in my nature to bury my head in the sand, ignore the news, and be happy.  I happen to believe that it would be wrong for my generation — the offspring of the “greatest generation” — it would be wrong for us to stand by and let government destroy all of what our parents’ generation worked so hard to save for us –  the greatest of which is FREEDOM.

That gets me to my second force, and it collides head-on with the first force.  iNetGlobal just happens to be one of the world’s Poster Children because it is a business that epitomizes freedom.  Generally, the business model of iNetGlobal is comprised of two recent and major world developments that conflict, in spades, with Socialism.  a) The Internet represents freedom, and b) Multi-Level-Marketing (MLM) represents freedom.  What does iNetGlobal have for a business?  They sell internet marketing and advertising products, and they use the MLM marketing model to sell those products.

Over the past few weeks since the U.S.A. Government raid on iNetGlobal, I have been speaking out quite a bit.  I have been in the newspaper.  I have listened in the court-room.  I have been praised for my blogging, and I have been chastised on my blog as well as on other blogs.  Hence, what does that tell me?  It tells me that iNetGlobal represents — or as I said earlier –  iNetGlobal is a “Poster Child”  — to that demographic of the USA and the world that wants the freedom of the Internet and the freedom of MLM.  At the same time, iNetGlobal represents a “Wanted Dead or Alive Evil-Doer” for that demographic that prefers Socialism.

Poster Child for Freedom - Wanted Poster for Socialism

POSTER CHILD FOR FREEDOM -

WANTED POSTER FOR SOCIALISM!

My distractors have a right to their opinion.  If they really believe that Socialism is best, they have my blessing to believe it.  On the other hand, they do not have the right to use tyranny to stomp on my beliefs, nor my hard work, nor my right to sell legitimate internet marketing products using the MLM vehicle.  THE CONCEPT CALLED FREEDOM, I BELIEVE, IS THE “big rub” that CAUSED THE U.S. GOVERNMENT TO RAID INETGLOBAL AND SEIZE THEIR ASSETS.

When I think about the raid itself, immediately realizing full-well the implications of having millions of iNetGlobal dollars frozen, our initial response was to write this: 

Posted on February 25, 2010

 http://cheapclix.net/to-inetglobal-independent-business-owners/.  Conclusion:  There seems to be a lot more to the story!

DID WE “NAIL IT” WHEN WE SAID THAT on February 25??

THERE IS A LOT MORE TO THE STORY.  HERE ARE SOME OTHER LINKS.

www.mlm-im.com

 www.homesquadcities.net

 www.startribune.com (search inetglobal) (read the comments)

www.ibnn.com (search inetglobal) (read the comments)

www.patrickpretty.com (search inetglobal) (read the comments)

or Google Search “inetglobal seizure” at www.google.com

One final thought, for now:  The above links are “tip of the iceberg”.  If you want to see the iceberg, do a Google search “usa government seizure”.  Warning:  Don’t do it if you dislike controversy.

 

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iNetGlobal Update: Attorney Mark Kallenbach Sworn Declaration

March 27th, 2010

This was filed with the motions that were filed by iNetGlobal Attorney Jon Hopeman

Sworn Declaration by Attorney Mark Kallenbach

Mark J. Kallenbach, Esq. makes the following sworn declaration pursuant to 28
U.S.C. § 1746.
1. Since approximately 1981, I have been licensed as a certified public accountant by the Minnesota Board of Accountancy.
2. As a certified public accountant, I have prepared hundreds of financial statements, including audited statements, reviews and compilation reports. I have also prepared hundreds of tax returns.
3. In 1983, I was admitted to practice law in Minnesota. I am admitted to practice before the federal court for the District of Minnesota, to the Eighth Circuit Court of Appeals, and to the United States Tax court.
4. My present law practice consists of consulting with companies which are in the early stage of development and are experiencing growing pains. I also handle business litigation, professional malpractice claims, and claims against insurance companies and banks. I also prosecute appeals when appropriate.

5. In the late 1980s or early 1990s, I placed my license to practice public accountancy on an inactive status. Since then I have been practicing law and engaging in other business endeavors.

6. In my law practice, I continue to use the skills that I acquired as a certified public accountant. I analyze at least ten financial statements or similar documents in a given month.

7. On January 13, 2010, Inter-Mark Corporation ( IMC ) employed me on a monthly basis to assist it with legal matters. Since then, I have acted in that capacity.

8. My investigation shows that Inter-Mark and its subsidiary iNetGlobal and its other subsidiaries are clean, legitimate and profitable businesses.

9. One of the matters that I was asked to address was IMC s January 5, 2010 termination of Mr. Steven Keough, its President, Chief Executive Officer, and lawyer. Mr. Keough was terminated because within a month or so after being hired in late October of 2009, Mr. Keough made no progress in understanding the business, did not fit in with IMC s rank and file, was unwilling to work with IMC s board of directors, and attempted to take over IMC s business from Mr. Steven Renner.

10. As part of my due diligence in wrapping up IMC s termination of Mr. Keough s employment, I investigated and explored the reasons for Mr. Keough s termination.

11. Among other things, I have viewed a marketing tape made by Mr. Keough on December 29, 2009. This video was posted on iNetGlobal s website on January 5, 2010 for review by customers and the public. iNetGlobal is a subsidiary of Inter-Mark. When the Secret Service viewed the website, it would have seen this video. In it Mr. Keough stated that his focus in 2010 was going to be to recruit many more customers all around the world. He did not say anything about the business being illegal.

12. On January 6, 2010, Mr. Keough attempted to extort over $500,000 from iNetGlobal. He demanded payment of the money by 5:00 p.m. that day or all bets are off. A copy of the e-mail is attached as Exhibit A.

13. According to the Secret Service s affidavit, Keough contacted the government in this matter for the first time on January 8, 2010.

14. As of that date, January 8, 2010, Mr. Keough had not informed any officer, board member, or employee of Inter-Mark or iNetGlobal that he thought there was any illegal activity.

15. On or about January 17, 2010, IMC learned that the United States Secret Service was conducting an investigation of it.

16. On January 17, 2010 or thereabouts until January 25, 2010, I left three or four voicemails with Ms. Katherine Westpetal of the United States Secret Service. I asked whether the Secret Service was investigating IMC and informed her that IMC would cooperate with any investigation.

17. On the morning of January 26, 2010, I met with Mr. Keough for breakfast to discuss his dispute with IMC. The meeting lasted 45 minutes. Mr. Keough presented a three-ring binder to me containing a draft of a 13 page complaint against IMC and others. At no time did Mr. Keough indicate to me that IMC was involved in any illegal business. His complaint was that he had been illegally terminated because he questioned disbursements that were made to Mr. Renner so that Mr. Renner could pay taxes due and owing to the government.

18. On the afternoon of January 26, 2010, Special Agent Westpetal left a voice message in response to my January 25, 2010 voicemail with her office. She stated in her voicemail message to me that she appreciated my offer of cooperation and stated that she did not think she needed any input at all. She stated its we just have some initial concerns from awhile ago and we ve been looking into it so again, not that big of a deal, nothing that we need cooperation on by any means but if we do deem that appropriate down the line I will definitely give you a call. I never heard anything again from the Secret Service until it executed search warrants on February 23, 2010.

19. I believe there are statements in Ms. Westpetal s affidavits in support of the search and seizure warrants in this case which are either knowingly false or in reckless disregard of the truth. The entire premise of Ms. Westpetal s first affidavit, Docket No. 3, is that iNetGlobal does not sell any legitimate advertising services. It is a business, she contends, that does not really do business and that depends upon member growth to pay rebates. ¶46. At paragraph 54, Ms. Westpetal states that Special Agent William Stack had logged into iNetGlobal and begun to visit its paid advertisements. She stated that ads range from other multi-level marketing sites to affiliate programs, non-English websites, and even iNetGlobal s home page. Her affidavit then states Few Legitimate Advertisers.

20. I have visited the website several times myself over the past days since the search warrant was executed 21. It is not true that the website advertisements include only other multi-level marketing sites, affiliate programs, non-English websites, and iNetGlobal s home page. Anyone who viewed the website would know this.

22. The website indicates the precise number of advertisements that are posted on iNetGlobal s website by its customers daily. For example on March 23, 2010, there were 19,061 ads posted. Historically there have been between 10,000 and 20,000 ads per day posted. Most of the ads run for a short period of time. A viewer has the option of searching the ads by key word. I have done a random survey of the ads posted in the days since February 23 and have found ads for small businesses selling numerous goods and services, including bowling lessons, golf lessons, nutritional supplements, purified water, camera equipment, photograph lessons, investments in foreign currency exchanges, optical products, wedding services, fishing secrets, soccer conditioning, gardening manuals for organic vegetables, travel agency services, manuals on building high performance computers, dental hygiene clinics, food recipes, making wine and beer at home, golf, Chinese medicine, acupuncture and herbs, home woodworking, coffee, real estate sales, auto insurance, online grocery shopping, and thousands of other businesses, each of which is selling products unique to that business. I estimate 90% of the ads are in English. It is simply false to say there are Few Legitimate Advertisers or to say the ads only include multi-level marketing sites, affiliate sites, non-English websites, and iNetGlobal s home page. It is false to say there was no legitimate business, and false to say iNetGlobal depended only on member growth for revenue.

23. SA Westpetal states at paragraph 56 that customers were paid to view ads even when it was impossible to view them. The reason customers were given credit on these three days was due to technical problems with the platform on those days. This was an isolated incident. Most of these customers had paid for the right to view ads, and to receive discounts for viewing. There was no regular practice of paying customers to view ads when there were none to be viewed.

24. Other false statements in the Westpetal affidavit involve paragraphs 63-69.

25. These paragraphs describe an iNetGlobal seminar at which Mr. Renner spoke in New York on January 23, 2010. In fact, it was a two day seminar extending into January 24, 2010. I have watched a tape of parts of that seminar. These paragraphs are false by omission. On January 24, Mr. Renner clearly told those present that iNetGlobal was a sales company, that iNetGlobal did not guarantee that the customers would make any money, that no commissions were paid unless a sale is made, and that commissions could be earned only through the customers own efforts. The Westpetal affidavit does not tell the court of these disclaimers.

26. Paragraph 67 of the Westpetal affidavit specifically describes a subsidiary of iNetGlobal called V-Local. SA Westpetal implies that V-Local has very few listings and its search engine does not work.

27. SA Westpetal describes in paragraph 67 searching for coffee shop in Minneapolis, Minnesota on V-Local, and finding no results. Westpetal also alleges that when she searched under coffee shop, food and dining, six coffee shops in Iowa, Kansas and other states were identified, only one of which was in Minnesota. She also describes searching on V-Local for gym and restaurant .

28. To test Ms. Westpetal s affidavit, on March 3, 2010, I did a search on VLocal for restaurant. As Ms. Westpetal stated, the search yielded no results. However, the user is urged by the program to use a less generic, more specific key word. Accordingly, I searched in Minneapolis, Minnesota for Chinese restaurant and located six restaurants in V-Local. I searched for Mexican restaurant in Minneapolis and was given twelve listings. I searched for barbeque restaurants, and was given six listings. I also found two Mediterranean restaurants.

29. I then searched for coffee shops in Minneapolis, Minnesota and came up with six listings in the Minneapolis area. Ms. Westpetal s affidavit is false in stating that V-Local is populated only with one coffee shop in all of Minnesota, and no gymnasiums or restaurants. Anyone viewing the website would see this then and now.

30. The true facts are that V-Local has 3,511,000 businesses listed on its search engine. iNetGlobal purchased the right to populate V-Local with these listings from a company called Info USA. In addition, V-Local has sold 37,832 additional listings by new customers on V-Local.

31. I believe that if the Court knew of the above false statements made by SA Westpetal, it would not have signed the search and seizure affidavits in this case.

32. The effect of the seizure of the business assets and records is to put almost 75 people out of work. These are workers of modest means. Eight of them are computer programmers. Some of the programmers work in research and development. Some employees are in customer service. Some have language expertise in Mandarin, Russian, and Spanish. Some are salespeople. Some are accountants and bookkeepers. The money seized was in part for their paychecks. It was in part for payment of their children s health insurance premiums.

33. The money seized, $25 million in all, consists of approximately $11 million which is owed to customers of iNetGlobal.

34. iNetGlobal is not an investment business. It makes no promise of return on investments. It sells internet services to individuals and to small businesses. Most of its revenues come from the sale of those services.

35. iNetGlobal sells a product called V-Web which is a web hosting service. It provides customers a place where they can set up their own websites. It also provides customers a place where they can register their proprietary domain names. Approximately 50,000 customers have purchased the right to set up websites. So far, 2,378 websites have been set up. As the business is less than 18 months old, most websites have been set up within the last six months. The sales trend here is up.  24 websites were set up in April of 2009, 91 in September of 2009, 338 in December of 2009, 361 in January of 2010, and 327 in February of 2010, even though the month was shortened by the execution of the search warrant affidavit.

36. 50,000 customers have purchased the right to register their domain names. So far 3,031 have registered their domain names with V-Web. The sales trend here is also up over time.

37. The Court may ask why so few websites and domain names have been registered. The Court should understand that most of the customers are older people in their 40s, 50s and 60s who have no experience with the use of the internet to set up a website, register a domain name, do advertising, or run a business. Many of our customers are neophytes. They are gradually learning these skills.

38. iNetGlobal also sells a product called V-Mail and e-mail marketing service. It provides a way for customers to create an e-mailing marketing list and to communicate with their own customers.

39. Another product is called V-Shops which provides a way for businesses to sell online to their customers.

40. Another service sold is called V-Train. This is an online training service which teaches customers how to register domain names, to set up their own websites, to establish their own e-mail marketing service, and to market their business on the internet. It allows a customer to view hundreds of hours of films, still shots and text that teaches them these skills.

41. iNetGlobal also sells online trafficking and advertising services. There are two principal services. One is the Acesse search engine, which is similar to Yahoo, Google and Bing. The company has a development agreement with Yahoo. Yahoo allows Acesse to use its search results in the Acesse search engine for free. At some point when Acesse builds enough volume, Yahoo will begin to charge for this service.

42. The second service is a pay per view platform where customers place their own advertisements for their own businesses. In doing so, customers generate more traffic to their websites which are hosted by iNetGlobal, and to any websites they may have which are not hosted by iNetGlobal. They are also able to sell goods and services directly to their own customers.

43. iNetGlobal also sells a service called V-Local, described above at ¶30.

44. Another service sold is V-Webcast which sells online conferencing services to allow people to conduct online video and audio conferences over the internet.

45. Another service sold is V-Newswire. It sells press release services. For a fee, the company will write and distribute press releases over the internet. INetGlobal purchased the right to distribute press releases to over 800,000 media outlets around the world.

46. Most of the company s revenues come from customer purchases of the web hosting, domain registration, web training, e-mail services and advertising. The sale of advertising generates the most revenue. The most important thing a business needs are these services, which allow it to register a domain name, get the websites up and running (many have more than one), place their weblogs, promotions, and advertisements.

47. Most of the customers about two-thirds and it is this point that the Secret Service did not grasp are constantly putting new money into the business in the form of monthly subscription fees and advertising purchases. Most of the customers buy services on an ongoing monthly basis. Most of the customers are not just surfing ads, as the Secret Service suggests. New money from new customers is not being used to pay off old customers.

48. It is possible for customers to earn commissions. To do so they register as sales consultants for $59.95 and they sell the company s services to other people. They can get a commission for doing so. They can also get a commission by recruiting someone else to sell on their sales team. For example, one could sell advertising to another person to be placed on the pay per view platform.

49. No one gets commissions simply by recruiting a consultant. The new consultant has to make a retail sale of one of the company s services. Then both the consultant and the new recruit share in the commission.

50. It is critical to know that all commissions are calculated by the computer software on a daily basis. And the accounting is done daily. When the company incurs a liability to a consultant for commissions, the commission is immediately booked on an accrual basis and the money is set aside in a separate escrow account to pay the commissions. A given sales consultant s commissions are tracked, escrowed, and paid out to the customer within two weeks upon request. This business has never paid out more money than it took in. It has never promised to pay out more money than it took in. It has never paid old customers their commissions with monies from new customers.

51. You will see in the seizure returns that the Secret Service seized $25 million or so. Of that $25 million, $11 million is money that was escrowed for customers. Of the $25 million, many thousands represent employee pay and health insurance premiums. The company had monies escrowed to cover all commissions owed, and to cover taxes as well. The tax money was also seized by the Secret Service.

52. The books and records of the company support what I say. In a Ponzi scheme, the liabilities of the company increase drastically over time. Its cash on hand, however stays flat or even declines. The books and records of the company over the past 14 months show that as the liabilities of the company have increased, the revenues and the cash on hand have increased even more. For the last 3 months the liabilities have been only about 11 percent of the cash on hand. All of these figures are in financial statements prepared independent of Mr. Renner.

53. There is an iNet surf program. It relates to the advertising. It is too complicated to fully explain in this space. In essence, one can sign up to participate as a free surfer. This is free. It does not cost anything. If one free surfs, meaning clicks on the customers advertisements posted on the company s pay per view platform, the customer can get gift coupons to redeem through Amazon.com. There are 10,000 to 20,000 customer ads posted at any one time. The ads are changing daily. Some of them are up only for a few days. If a customer clicks on 25,000 ads for 30 seconds at a time, the customer can get a $25 gift certificate. That is all. The free surfers do not getanything else. The company purchased the gift cards from Amazon. The cash reserves to cover this obligation going forward are also escrowed.

54. There is another form of surfing. The customers who pay in monthly can earn back a percentage of the services they purchase. They do this by viewing the ads on the iNetGlobal website. If a customer purchases $100 in webhosting service, for example, the customer can get up to $50 back from the company by viewing ads posted by advertisers.

55. Here is the value of the advertising with iNetGlobal: a. There are so many surfers on the pay per view ad platform that an nadvertiser is assured of immediate eyeballs seeing the ads, there being 1.5 million page views per day. Within minutes of any ad being posted, it is being viewed. It is as efficient as a television ad. b. The market s brand awareness of the product or service the advertiser is selling is increased. c. Advertisers drive customers to their own websites, enabling them to sell their perfumes, or auto parts, or paper products, or whatever. d. Viewers from 120 countries view the ads. e. The customer optimizes his website s profile on the major search engines. The more ad views he accumulates, the more credibility he or she has with Google, Yahoo, Bing and Acesse. His rankings by these engines based on customer hits will increase and result in even more traffic. Some of iNetGlobal s customers are ranked first by Google in their business specialties in their communities. f. Viewers do not have to randomly surf. They can search for goods and services by keyword. g. iNetGlobal gives the advertiser detailed statistics showing the impression (how many times the ad is shown on iNetGlobal s rotator) and clicks (how many times the ad is viewed), which allows the advertiser to target a specific market.

56. As of the date of the warrants, the vast majority of the customers were paying monthly for services. 50,000 customers pay for monthly web hosting services, 50,000 for domain registration, and 50,000 for online training. 40,000 pay for monthly email marketing services. 40,000 pay each month for advertising.

57. All payments back to customers are strictly limited. The company does not incur obligations it cannot pay.

58. Mr. Renner was putting most of the revenues back into the business. He was about to purchase a building for expansion space. He was pouring hundreds of thousands of dollars into software development. He was hiring more employees.

59. SA Westpetal contends in paragraph 59 of her affidavit that this is a Ponzi scheme because of the absence of any reasonable or legitimate business nvestment.

60. It is obvious that the Secret Service did not have in its possession IMC s financial statements. In order to ensure the accuracy of IMC s financial and tax reporting, it retained the CPA firm of Lethert, Skwira, Schultz & Co., LLP, which prepared the statements. I have reviewed them. 61. The books show that for the 12 month fiscal year ending October 31, 2009, IMC s sales amounted to approximately $47.4 million with an after tax net income of $1.7 million. For the month of November 2009 IMC s sales were $16.7 million with an after tax net income of $0.56 million. For the month of December 2009, IMC s sales were $22.8 million with an after tax net income of $0.7 million. For the month of January 2010, IMC s sales were $29.5 million with an after tax net income of $1.2 million.

62. The books show that for the fiscal year ending on October 31, 2009, IMC had cash on hand of $8.3 million. Its total liabilities amounted to $7.5 million leaving a cash surplus of $0.8 million. For the month of November 2009, IMC s total cash amounted to $10.7 million and its total liabilities amounted to $9.8 million, leaving a cash surplus of $0.9 million. For the month of December 2009, IMC s total cash amounted to $14.5 million, its total liabilities amounted to $12.9 million, leaving a cash surplus of $1.7 million. For the month of January 2010, IMC s cash amounted to $15.7 million, its total liabilities amounted to $12.7 million, leaving a cash surplus of $3 million.

63. The accounting firm based its numbers upon numbers provided to it by IMC s finance and accounting department. I know from my study of the business that Mr. Renner does not have anything to do with the generation of the figures that the accounting department in turn uses. The accounting department uses figures generated by the computer system run by other persons.

64. Based on my 30 years of experience in the business and legal communities, I believe that if IMC was closed today, and all of its obligations paid, IMC would still have as of January 31, 2010 $4.5 million in cash.

65. My investigation has also revealed that the informant Steven Keough told numerous lies to the United States Secret Service.

66. The entire premise of Keough s falsehoods to the Secret Service, and of the Secret Service s affidavit, is that money from new customers is being used to pay obligations to old customers. I have analyzed the business. This is not the case. Over the course of the life of the business there has been a constant flow of new money injected into the business by old customers who are continuing to purchase IMC s products and services on a monthly basis. On March 2, 2010, I asked IMC to produce a listing of its ongoing customers for me. This report showed that IMC has 9,566 customers who pay $20 per month for web hosting, e-mail marketing services, and training. In addition, there are 39,169 customers who pay $40 per month to IMC for web hosting, e-mail marketing services and training, and V-Mail. Thus, IMC receives approximately $1,758,080 in recurring sales from old customers each month. This is the opposite of what one would expect in a Ponzi scheme, where no new money comes in from old customers. IMC has collected millions of dollars in monthly subscription fees since October of 2009. This is why it had the cash on hand to meet all of its obligations, until the Secret Service took the cash.

67. At paragraphs 60-62 of the Westpetal affidavit, the Secret Service is very critical of iNetGlobal s customer service. This impression is based upon falsehoods conveyed by Keough. When Keough first began working at the company, the company had just installed new servers. Thus, the system was down a tiny bit more frequently than before the installation of the new servers. I have been provided with documents which have recorded the amount of time that the servers and computer programs have been up and operating at iNetGlobal during the time that Keough was employed there, from October 27, 2009 through January 5, 2010. The servers were up 99.97% of the time when Keough was employed there. They were offline approximately 3 minutes total in 8 weeks. During the same period of time, the programs on the servers were working 99.395% of the time. There were approximately 500 minutes over that 8 weeks where customers could not use the actual site. This amounted to approximately 1 hour per week.

68. Paragraph 44 of the Westpetal affidavit contends that there was only one iNetGlobal employee available to assist customers in placing their advertisements on the rotator. This misconceives the business. In truth, the customers place their own advertisements on the rotator based upon the online training that is available to them. In truth, when Keough was employed at the company there were 10 iNetGlobal employees and some employees of Cash Cards, another subsidiary, who worked in a call center room that was charged with taking calls from customers in 4 languages. Keough was well aware that there were 10 persons minimum available to service the customers. Keough also went to Canada to meet with 4 of the support people there.

69. Paragraph 51 of the Westpetal affidavit contends the auto repurchase feature of the computer program could not be turned off, forcing customers to re-invest their money rather than cashing out. Paragraph 60 recounts Keough s claims of his conversations on January 11 with a Nevada customer. Paragraph 61 recounts West petal s registration as a free surfer and her attempt to cancel the auto repurchase feature.

70. There have been no significant problems with the auto repurchase feature. It is completely optional and can be turned off at any time. Customers have had other problems with cashing out, which were usually due to their not filling out the proper IRS W-9 form, and other reasons. These problems were all resolved by customer service. SA Westpetal recounts the experience of a single Nevada customer who was unable to cash out due to the auto repurchase problem. This customer is well known to iNetGlobal. He has consumed more customer service time than any other customer. He is unskilled with computers and the internet. On six separate occasion he was incapable of absorbing the instructions he was given.

72. SA Westpetal did not understand, or chose not to tell the court, that as a free surfer she was not earning any money which she could cash out. The auto repurchase feature does not even apply to a free surfer account. Whether it is on or off for a free surfer is irrelevant.

73. Paragraph 48 of the Westpetal affidavit says that Keough claims there were only 30,000 customers, not 50,000. I have reviewed company records which show that as of January 5, the day Keough was fired, the company had a total of 69,551 customers. 24,259 of them were free surfers. 45,292 of them were paying customers. Mr. Keough lied to the Secret Service by claiming there were only 30,000 customers.

74. Paragraph 49 of the Secret Service affidavit is incoherent. It contends that Keough stated that at least 87% of the company s revenue was generated from the sale of memberships to members residing in China. It then goes on to describe the revenue for the company, and in very confusing terms gives the impression that overall revenue was $28 million, 87% of which came from China, only one quarter of one percent of which was from the sale of outside income, namely the sale of 1,000 memberships at $59.95 each. The false impression is, this was the company s only source of outside income. I have reviewed documents and computer printouts from the company which show that this is totally false. First, the total revenue for the company from its inception on all products is $96,231,692. This means that when Mr. Renner states at seminars that the company s revenue has been $100 million, he is substantially correct.

75. Second, the $59.95 sales kit only generates a small amount of the company s revenue. The company has sold 50,078 consulting kits, despite Mr. Keough s contention that only 1,000 were sold. These sales brought in $2,959,454 altogether. The bulk of the company s revenues come from the sale of the advertising. Customers, old and new, pay fees on an ongoing basis for the right to post advertisements.

76. Just one week prior to the February 23, 2010 execution of the search warrant, IMC was in the process of renting 4,000 square feet of additional space for customer service representatives and was seeking an executive to train customer service representatives. I believe that Keough was aware of these plans. In 2008, IMC hired skilled and competent attorneys from the firm of Reece & Grimes, who are familiar with marketing law, FTC rules and regulations, and the like. IMC has also employed counsel outside of the United States to ensure compliance with foreign law.

77. 75 people lost their jobs on February 23, 2010, as a result of these warrants. They were computer programmers, computer program researchers and developers, customer service workers, accountants, and sales people. Since the warrants, the company made the business decision not to take in new money from customers. It has no cash. It has survived by hiring back a skeleton crew and borrowing money to pay employees and for working capital.

78. I attach as Exhibit B, a news article dated February 25, 2010 at 1:41 a.m. by Patrick Pretty, a journalist, posted online. The article shows that as of that date and time, the journalist had in his possession a copy of the search warrant affidavit in this case. As of that time, the affidavit was still sealed, and no returns had been made to the court, according to the docket sheet. As of February 25, 2010, I had tried to get a copy of the affidavit. I was informed by the U.S. Attorney s Office it was sealed. I was not provided a copy until February 26, 2010 at 1:57 p.m., 36 hours after the press had it. Someone leaked the affidavit to the press.

79. I have learned that the Secret Service agents investigating this case are informing customers, witnesses, and employees that Steven Renner is running a Ponzi scheme. I believe it is an improper investigative technique to suggest answers to a witness. They have also told employees they cannot have a lawyer present when the Secret Service interviews them.

80. Attorney-client privileged documents were seized, both in electronic and hard copy forms. They were demanded back from the government. The government refused to return them.

81. I have made this declaration pursuant to 28 U.S.C. § 1746. I declare under the penalty of perjury under the laws of the United States that the foregoing is true and correct.

/s/ Mark J. Kallenbach

Mark J. Kallenbach, Esq.

 

 

 

 

 

 

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iNetGlobal Update: March 25 Legal Motions

March 26th, 2010

iNetGlobal Alleges USA Government Leaking of Confidential Warrant Affidavit

iNetGlobal Requests Relief and New Government Agency to Investigate

_________________________________________________________

Below is the text of the motions made by iNetGlobal Attorney, Jon M. Hopeman, of Minneapolis, MN, USA, Office of FELHABER, LARSON, FENLON & VOGT, P.A.  This writer has further documents (which will be posted soon on this site) which strongly suggest claims of extortion attempts of iNetGlobal by former CEO Steven Keough, — and documents that appear to validate iNetGlobal claims of illegal leaks by the USA Government to the press with regard to confidential warrant affidavits (leaks that were made to the press media prior to being made available to iNetGlobal, itself).  Please keep posted on this site for further developments.

Former iNetGlobal CEO Steve Keough

Former iNetGlobal CEO Steve Keough

Motions Filed:

64770.1
UNITED STATES DISTRICT COURT
DISTRICT OF MINNESOTA
Mag. No. 10-MJ-71 (FLN)
In Re Search Warrants of February 23,
2010, and Later Days STEVEN RENNER S MOTION FOR
RETURN OF PROPERTY UNDER
FED. R. CR. PRO. 41(g) AND OTHER
RELIEF
Steven Mark Renner by his counsel, Felhaber, Larson, Fenlon & Vogt, P.A. and Jon M. Hopeman, hereby move the Court for the following relief:

1. Ordering the government to return to Steven Mark Renner and his companies all items seized by the government by means of search warrants executed at Mr. Renner s companies on February 23, 2010, and in subsequent days.

2. Ordering the government to return to Steven Mark Renner and his companies all funds seized by the government by means of seizure warrants executed upon Mr. Renner s bank accounts and upon the bank accounts of his companies on February 23, 2010 and in subsequent days. Mr. Renner and his companies seek return of all customer funds, employees funds, and funds belonging to the companies.

3. Ordering the government to return to Steven Mark Renner and his companies all attorney-client privileged items seized by the government by means of the search warrants executed at Mr. Renner s companies on February 23, 2010, and in subsequent days and barring review of the same by a taint team.

4. Granting an evidentiary hearing. 64770.1 2

5. Alternatively, appointing a Special Master and ordering preparation of a report to the court within 45 days on the question of whether there was a fraudulent scheme at Inter-Mark and whether monies should be returned to the business, its employees, and customers.

6. Referring to another federal agency for investigation the matter of the leak of the search warrant affidavit to the press, and ordering a report be prepared for the court and parties within 45 days.

7. Enjoining and restraining the government from informing witnesses, customers, and employees that Mr. Renner and his companies and employees were running a Ponzi scheme upon those customers and others, and from leaking confidential information to the press.

8. For such other relief as the Court deems just.

This motion is made upon Fed. R. Cr. Pro. 41(g) and upon the grounds stated in the attached declaration and memorandum of law.

Dated: March 25, 2010

Respectfully submitted,
FELHABER, LARSON, FENLON & VOGT, P.A.
By s/ Jon M. Hopeman
Jon M. Hopeman, #47065
220 South Sixth Street, Suite 2200
Minneapolis, Minnesota 55402
(612) 339-6321
(612) 33-0535 (fax)
jhopeman@felhaber.com
ATTORNEYS FOR STEVEN MARK RENNER


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Patrick Pretty on iNetGlobal: A Study

March 22nd, 2010

I have been studying the posts on Patrick Pretty’s (actually, his name is Patrick Hernan from Pennsylvania) blog pursuant to his iNetGlobal reporting.  Until now, I have been quietly sitting by, but now it is ENOUGH!  Patrick’s most recent post:

http://patrickpretty.com/2010/03/20/analysis-another-troubled-autosurf-another-bizarre-pr-approach-some-inetglobal-supporters-attack-the-messenger/

RAISED MY IRE!!!

Patrick Pretty said:

If you follow news about the so-called autosurf “industry,” the mind-boggling PR approach by some supporters of Steve Renner’s INetGlobal is apt to remind you of the bizarre approach employed by Florida-based AdSurfDaily and some members of the now-defunct Surf’s Up forum.

If you’re new to the ongoing saga of AdSurfDaily (ASD), the developing story about INetGlobal and the autosurf “industry” in general, ASD’s case is instructive. Although ASD claimed to be a professional advertising and communications firm, one of its first efforts to counter the federal government’s allegations was to compare prosecutors and the U.S. Secret Service to “Satan” and the 9/11 terrorists who killed nearly 3,000 people —

SO   —  WHAT IS PATRICK PRETTY’S MOTIVE?

I may be able to give you a clue.  I have this comment www.patrickpretty.com, and this is what I commented (if it gets approved!):

Patrick – You keep talking about the “autosurf industry”. Problem is, you have never delved into what iNetGlobal is really all about. Autosurfing is the tip of the iceberg as to iNetGlobal products which their members and customers use — and use with internet-marketing IMPACT! Please take a look at this: http://cheapclix.net/why-inetglobal-is-not-a-ponzi-scheme/

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Follow the money, as they say. Is it poetic? When I do a Google search “inetglobal seizure”, Cheapclix beats you! And I’m right there with you using “inetglobal raid”.  Maybe you have a problem because the iNetGlobal products and tools are as good, — or maybe even better, than what you use, — or maybe what you sell and/or endorse! Maybe we should start looking into your “ulterior motives” at PatrickPretty.com. As they say, “follow the money”. Respectfully, Ken Haugen.

********************************************************************************

FOLLOW THE MONEY!

WHAT IS YOUR STAKE IN THIS INETGLOBAL STORY, PATRICK??  SEEMS TO ME THAT YOU ARE A BIT TOO INTERESTED TO MAKE ME BELIEVE THAT YOU DO NOT HAVE SOMETHING AT STAKE IN THE EVENT THAT INETGLOBAL GOES DOWN.  CERTAINLY, YOU ARE NOT ACTING LIKE AN UNBIASED MEMBER OF THE MEDIA.

BY THE WAY, PATRICK, HOW GOOD ARE YOU AND YOUR INTERNET BLOGGING AND MARKETING TOOLS?  SHOULD WE START A CONTEST? MY CHEAPCLIX.NET BLOG HAS BEEN AROUND SINCE LATE 2008, and the first post was 12/23/08 .  YOURS HAS BEEN AROUND SINCE AT LEAST APRIL 2007, ACCORDING TO www.whois.com.  WHY AM I KEEPING RIGHT UP THERE WITH YOU WHEN SEARCHING POSTS OF COMMON INTEREST?? THINK MAYBE INETGLOBAL PRODUCTS AND SERVICES HAVE HAD SOMETHING TO DO WITH THAT??

Hey, Donny Allen (www.ibnn.org) , do you think we should look into Patrick Pretty’s (actually Patrick Hernan’s) MOTIVES??



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Why iNetGlobal Is NOT a Ponzi Scheme

March 21st, 2010

The Forgotten Man
Creative Commons License photo credit: Alex E. Proimos

Seize the Money — Ask Questions Later!

 

iNetGlobal $25 Million Money Frozen, $11 Million Member Liabilities

USA Government Holds Members’ Money and iNetGlobal’s hard-earned money!  Why?

**********************************************************

Definition of Ponzi Scheme: 

A Ponzi scheme is a fraudulent investment operation that pays returns to separate investors from their own money or money paid by subsequent investors, rather than from any actual profit earned. The Ponzi scheme usually entices new investors by offering returns other investments cannot guarantee, in the form of short-term returns that are either abnormally high or unusually consistent. The perpetuation of the returns that a Ponzi scheme advertises and pays requires an ever-increasing flow of money from investors to keep the scheme going.

*******************************************************

iNetGlobal recently paid around $2.5 Million Federal and State Income Tax.  Google pays billions.  Is Google a Ponzi Scheme??  Is Yahoo a scam?  Is AOL guilty of not having real products?  Fact is, internet marketing and internet media is very profitable, and all of these companies share a common reason for their success — they provide products that are valuable to internet advertisers and a low-cost way for their members and users (buyers and sellers) to find each other.  iNetGlobal is a Minneapolis-based company that has a unique set of legitimate internet marketing and advertising products.  iNetGlobal has been a fast-growing company that has learned how to develop these valuable virtual products, and the members and users are only guilty of one thing:  TOO SUCCESSFUL.  The DIRTY LITTLE SECRECT IS, I believe,  – THOSE KEY WORDS – ”too successful”.  The current economic environment in the USA has become wrought with Government suppression of free enterprise business –  NATIONALIZATION OF LARGE ENTERPRISES AND FREEZING ASSETS OF SMALL TO MEDIUM-SIZED ENTERPRISES.  To again quote iNetGlobal’s attorney:  “IT IS SAD!”  The USA Government has become anti-business.

www.cheapclix.net is an example of the power of the iNetGlobal internet advertising products and tools.  Its Alexa rankings for the past three months have increased 510%.  Another of my personal blog success stories:  www.mlm-im.com (up 330% on Alexa).  Fellow iNetGlobal member in India, www.evergreenstones.com, up 250%.  Another of my business blogs, www.homesquadcities.net up an astounding 2400% — a stunning example of local target niche advertising and internet marketing. The corporate site, www.inetglobal.com has had a three-month increase of 173% Alexa ranking.  Proof of the impact of the powerful iNetGlobal marketing tools — DO A GOOGLE SEARCH –  “inetglobal raid”.

 FIVE OF THE FIRST TEN GOOGLE RESULTS ARE POSTS ON CHEAPCLIX, OR ARE LINKS FROM OTHER SITES TO CHEAPCLIX!

INETGLOBAL PRODUCTS - TESTIMONY TO AWESOME RESULTS!

iNetGlobal NEVER HELD ITSELF OUT TO BE AN INVESTMENT!

iNetGlobal Sells Legitimate Powerful Virtual Products!

iNetGlobal, much like Google, Yahoo, AOL, Herbalife, Amway — Legal and product-oriented companies — testimonials to American ingenuity — that reach customers all over the world via MLM and/or IM (www.mlm-im.com) –  YET INETGLOBAL GETS RAIDED??  Herbalife was raided, too,  — early in its history.  Their revenues dropped from around $9 Million per month to less than $100,000 per month.  Herbalife survived that UNFAIR RAID, and today, Herbalife is successful all around the globe.

iNetGlobal provides provides effective products to their members and customers.  As members, we teach, we learn, and we earn while we learn.  IS THAT NOT THE AMERICAN WAY?  IN FACT, IS THAT NOT THE WAY OF THE ENTIRE FREE WORLD??  INETGLOBAL IS NOT A PONZI SCHEME, IT IS NOT A SCAM, IT IS NOT A FRAUD, AND IT IS CHANGING LIVES ALL OVER THE WORLD –  CHANGING LIVES FOR THE BETTER!  IS THAT NOT WHAT THE USA GOVERNMENT WANTS??  NOW THAT IS A REALLY GOOD QUESTION!!

NOW, JIM WALSH, REPORTER FOR THE MINNEAPOLIS STAR/TRIBUNE, YOU HAVE A SNIPPET OF THE OTHER SIDE OF THE INETGLOBAL STORY.  LET’S HEAR IT.  LET’S SEE IT IN YOUR NEWSPAPER ARTICLES.  LET’S SEE AND HEAR IT ON THE  TWIN CITIES TV NEWS MEDIA.  LET’S READ ABOUT IT ON THE STAR/TRIBUNE BLOG.  YOUR READERS WOULD NEVER HAVE FOUND THIS BLOG POST ON WWW.CHEAPCLIX.NET IF NOT FOR THE POWER OF THE INETGLOBAL INTERNET ADVERTISING AND MARKETING PRODUCTS AND TOOLS.

HERE IS A LINK TO A REAL EXAMPLE OF FREE ENTERPRISES: http://dailyreckoning.com/bombay-dreams-2/  iNetGlobal is making a presence in India, especially Mumbai (Bombay), as well as Chandigarh, Pune, Jaipur, Nasik, Chalis Gaon, Goa, Baroda, Bangalore  –  you name it, iNetGlobal is loved in India.  Soon to be launched in Bangkok, Thailand.  We are going to the “free world” with iNetGlobal.

  Any wonder why??

 

Inet Global, Internet Advertising , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , , ,

Jim Walsh Responds to Haugen re iNetGlobal

March 20th, 2010

News Crew in Times Square
Creative Commons License photo credit: James Trosh

 

_________________________________________________________

This communication has been received by Ken and Diane Haugen, from Reporter Jim Walsh, Minneapolis Star/Tribune re iNetGlobal:

Jim Walsh response, published as a blog “post” in lieu of a “comment”:  Refer to http://cheapclix.net/to-jim-walsh-minneapolis-startribune/

__________________________________________________________

“I am following up on several of the points made during the hearing for future stories. Unfortunately, space and time limitations do have an impact on what I could write immediately after the hearing. 

I think you misunderstand my job. I am not a part of the federal government. I was not notified by the federal government prior to the raid, the newspaper was called by someone who saw federal agents there. My office is located about a mile away and I walked over. Regarding your allegations of media bias, I stand by what I told you yesterday. I made attempts to talk to iNetGlobal employees and Mr. Renner. None would talk, on the record. That is their right, but to say that I did not try to talk to them for their side of the story is inaccurate. Regarding “Guilty until Proven Innocent,” perhaps you should take up that complaint with the U.S. Secret Service, which has made the Ponzi scheme allegations against Mr. Renner and iNetGlobal. 

I did mention in the story that Judge Frank asked about a partial release of funds and would address the issue later.

Finally, I have no desire to ever (pee) on your grave and I appreciate you and your wife talking to me after the hearing. I look forward to having a chance to talk to you again in the future.”

Thank you for your response, and we look forward to your updates about the iNetGlobal court hearing status, Mr. Walsh.

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To Jim Walsh, Minneapolis Star/Tribune

March 16th, 2010

 

THIS EMAIL SENT TO JIM WALSH, MINNEAPOLIS STAR/TRIBUNE

Read article:  http://www.startribune.com/local/87726342.html?elr=KArks:DCiU1PciUiD3aPc:_Yyc:aUU

Read Next Page: http://www.startribune.com/local/87726342.html?page=2&c=y

HERE IS MY RESPONSE TO JIM WALSH ARTICLE Jim:  You forgot to say that I could show you 300 or 400 examples of successful stories about internet marketing using the iNetGlobal products.  You also forgot to say that iNetGlobal is NOT Steve Renner.  And then you forgot to address the fact that I accused you of media bias with your ”Guilty ’til proven innocent” slant on the original ’story’.  –  Furthermore, you did not explain to Diane and me how it came to pass that you were so immediately “on the scene” for the February 23 raid.    You also forgot to mention that Judge Frank strongly suggested that iNetGlobal’s attorney may be well advised to petition the court for a partial release of the seized funds to continue with the iNetGlobal operations.  And then  –  you also forgot to mention that Steve Keough is on the record for trying to extort $500,000, or iNetGlobal will face the consequences.  Also  –  did you mention  — ??  Steve Keough was a disgruntled, fired, employee?  – 
 

Did you know, Jim Walsh, that the Steve Renner tax evasion case is legitimately under an appeal process?  Did you know, Jim Walsh, that the Jurors who convicted Steve Renner of Tax Evasion were never allowed to learn that Steve Renner had, in fact, paid his taxes??  That evidence was not allowed to be brought into evidence. 

Did you bother to mention this, Jim Walsh??  

From my blog, www.cheapclix.net  

iNetGlobal presented evidence showing that the company had knowledge, two weeks prior to the raid and seizure, that they were being watched by the Secret Service.  Upon receipt of that knowledge, iNetGlobal’s Attorney Mark Kallenbach contacted the Secret Service to discuss the matter, and invited the Federal Government to come to the Corporate offices for an opportunity to be informed about the company, its products, its books, etc.  iNetGlobal was informed that there were no pending issues.  That is to say, all was well with the USA Government and iNetGlobal.  Again, that was only two weeks prior to the raid!

Mr. Walsh, I could go on and on!  There are two big differences between you and me. Those difference are:  First,  I AM ON A MISSION TO PUT A STOP TO THIS KIND OF B.S. FROM OUR FEDERAL GOVERNMENT.  YOU ARE ON A MISSION TO ESCALATE THIS KIND OF B.S. FROM OUR FEDERAL GOVERNMENT.  and

Secondly, YOU HAVE TOO MUCH WORK TO DO, AND YOU DO NOT HAVE MUCH TIME TO DEDICATE TO THE INETGLOBAL STORY.  I HAVE HAD MY LIFE TIPPED UPSIDE-DOWN, SO I HAVE NOTHING BUT TIME TO DEDICATE TO THE INET GLOBAL STORY.

DIANE AND I ARE ON A MISSION.  IT IS TIME THAT THIS KIND OF USA GOVERNMENT ONSLAUGHT AGAINST SMALL BUSINESS BE STOPPED.  I CAN ONLY PRAY TO GOD THAT PEOPLE YOUR AGE SEE WHAT IS GOING ON, AND ACT TO PUT A STOP TO IT.

IF YOU DO NOT, THEN GO AHEAD AND PEE ON MY GRAVE IN A DECADE OR TWO, BUT MAKE SURE THAT YOU ASK FOR GOVERNMENT PERMISSION TO UNZIP YOU PANTS FIRST.

By the way, in the event that you inadvertently delete this email, you will find the full text of it on one of my blogs, www.cheapclix.net.  Lest you misunderstand the power of the iNetGlobal marketing tools, take a look at some of the Alexa ratings of some of the other blogs that have been developed using iNetGlobal products.

Ponzi, huh??  iNetGlobal scam, huh? Fraud, huh?  No products, huh??  Stole people’s money, huh??  If you want to know who stole people’s money, talk to the Secret Service.  They have it hidden away, somewhere!!  To quote Attorney Mark Kallenbach on February 23, RAID DAY, ”It is sad”.  At least I will give you credit for getting that right!!

Respectfully, Ken Haugen

 

 

 

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iNetGlobal Attorney: “I have not yet begun to fight!”

March 15th, 2010

MY PREDICTION:  INETGLOBAL RAID WILL BE USA GOVERNMENT EMBARRASSMENT!

Today, the Federal Courthouse in St. Paul, Minnesota, was an interesting place for concerned people with a stake in the illegal raid and seizure of iNetGlobal, Minneapolis Internet Service Provider.  While tens of thousands of lives have been impacted by the February 23 onslaught by the Secret Service and the FBI, the iNetGlobal case was afforded a hearing that lasted less than an hour.  However, those precious minutes will have a lasting effect on all of us that have knowledge of the powerful iNetGlobal products and services.

iNetGlobal’s attorney was at the top of his game.  After the hearing, I had the opportunity to to comment to him.  His response:  “Ken, to quote John Paul Jones, ‘I have not yet begun to fight!’ “  Here are some facts that came out today, some on the court record, some passed on to me by attorneys and company officers:

iNetGlobal presented arguments that former CEO Steve Keough attempted to shake the company down, –perhaps extort –, for $500,000, or face consequences!

iNetGlobal presented evidence showing that the company had knowledge, two weeks prior to the raid and seizure, that they were being watched by the Secret Service.  Upon receipt of that knowledge, iNetGlobal’s Attorney Mark Kallenbach contacted the Secret Service to discuss the matter, and invited the Federal Government to come to the Corporate offices for an opportunity to be informed about the company, its products, its books, etc.  iNetGlobal was informed that there were no pending issues.  That is to say, all was well with the USA Government and iNetGlobal.  Again, that was only two weeks prior to the raid!

iNetGlobal, as of February 23, had $25 Million in funds that have been frozen by the illegal seizure, against about $18 million in liabilities accrued to members and operating costs.  This is not to mention the value of the software products and other programming investment that the company has legitimately spent to grow and develop itself.

iNetGlobal’s Corporate Entity paid around $2.5 million in Income Taxes for the 2009 Tax Year.

Steve Renner, CEO, lives in a small home in a Twin Cities suburb, and drives a leased automobile.  He does not live like a Ponzi Fat-Cat perpetrating a scam or fraud via his iNetGlobal system.

Steve Renner, CEO, has been recently convicted of income tax evasion, and it is legitimately in the legal process of being under appeal.  I learned that the conviction was brought from a jury trial.  I also learned that the jury was denied hearing evidence that Mr. Renner had paid the tax.

Steve Keough should have a lot of explaining to do.  First of all, when hired as CEO of iNetGlobal, it was a classic case of “The Peter Principle”.  Steve Keough was fired, and he was fired for cause.  Steve Keough filed for unemployment, and iNetGlobal did not contest it.  However, anybody that carries a resume’, including a law practice, a military pension, and multi-lingual skills –  should he not have to explain why he qualifies for unemployment?????  Clearly, Steve Keough was a disgruntled former employee who happened to have the contacts within the Federal Government bureaucracy to convince some wet-behind-the-ears government agents that there was probable cause for a raid.  In the end, I dare say that some higher-level bureaucrats are going to roll some heads.  When will that be?  Perhaps it will be after iNetGlobal has been destroyed by these false allegations.

BUT HONORABLE JUDGE FRANK DID LEAVE MORE THAN A GLIMMER OF HOPE.  IN FACT, JUDGE FRANK AS MUCH AS SAID TO THE INETGLOBAL COUNSEL, not his precise words, but close  –  “I AM AVAILABLE FOR YOUR REQUEST TO CONSIDER AT LEAST A PARTIAL RELEASE OF THESE $25 MILLION IN SEIZED FUNDS.  WE SHOULD MOVE FORWARD WITH THESE PROCEEDINGS AND EARLIER IS BETTER THAN LATER”.

SOMEHOW, I GET THE FEELING THAT THE HONORABLE JUDGE FRANK, U.S. DISTRICT JUDGE, REALIZES THAT LIVES ARE IN THE BALANCE, AND I PROCLAIM TO YOU THAT HE SHOWED ME, IN LESS THAN AN HOUR, –  HONORABLE JUDGE FRANK IS A FAIR AND REASONABLE JURIST.  IF ANYONE CAN FIGURE OUT THAT THE FEDERAL GOVERNMENT ERRED IN THEIR SWIFTNESS TO CIRCUMVENT DUE PROCESS, AND ACTED ON THE BEHEST OF A BITTER TERMINATED EMPLOYEE WHO HAPPENED TO BELIEVE THAT HE WAS MORE IMPORTANT THAN THE THOUSANDS OF LIVES THAT HIS ACTIONS IMPACTED —, I BELIEVE THAT THIS JURIST CAN.

WE WILL SEE!

BUT

WE HAVE NOT YET BEGUN TO FIGHT!

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Illegal Seizure of iNetGlobal Exemplifies USA Government Corruption

March 15th, 2010

 

 

WHAT HAS HAPPENED

to the America that we used to have so much to be proud of?  iNetGlobal is now another victim of the US Government’s attack to destroy small and medium-size businesses.  Most of the time, the corrupt practices of our government are subversive and covert.  The recent iNetGlobal raid and seizure, however, was overt.  Given the quickness of the complicit news media to attach the word “Ponzi” , it is obvious that the Feds were well-prepared to establish public sentiment which would allow favor to their illegal seizure.

It was a senseless raid and seizure, spawned obviously by the fact that the iNetGlobal founder, Mr. Steve Renner, has become an international hero in the world of Internet Marketing and Advertising.   The illegal seizure of great companies such as iNetGlobal, without the benefit of due process, simply cannot be tolerated and allowed to continue.  I hereby declare my life commitment to being all over the internet, and all over the media, to expose and stop the U.S. Government from its ongoing plan to destroy and/or control free enterprise.  What better opportunity than now?  Currently, while visiting friends in India, I have had the enlightening experience of enjoying real freedom.

iNetGlobal is not Steve Renner.  iNetGlobal has not been convicted of tax evasion.  iNetGlobal is not Cash Cards International, and iNetGlobal is far from being a Ponzi Scheme.  iNetGlobal has real products that are of great value to businesses who have the need to successfully gain exposure on the internet.  To my knowledge, iNetGlobal has not engaged in money laundering.  If those allegations were to be true, then I would want nothing to do with it. 

The company has an MLM compensation plan that pays fairly, based on rewarding representatives that successfully market its products.  Their monthly autopay requirement is typical of almost all MLM companies.  We can debate their daily repurchase plan which required the use of the product by executive-level representatives, but it seems no more of an unreasonable expectation than a typical public corporation encouraging or requiring its employees and executives to purchase stock or options through an ESOP, which in effect creates internally-generated funds to enhance future income.   So  –  let’s debate it.  If it is so unreasonable, then why are representatives happy to do it, given that it results in company growth making internal funds available for future payment and company growth?  I believe that is a personal choice, and I do not believe that it is the business of the U.S. Government to interfere in the free choice that I make. 

This is a comment from Don Allen, posted on www.patrickpretty.com

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Don Allen

  • Patrick – I can’t answer any questions about someones personal spending habits that I know nothing of. If someone has a job and gets paid, its no different that someone going to McDonald’s and buying a Big Mac and the money from that sale goes to maintain the restaurant and pay the employees. A product or service has been provided.

    Speaking of Ponzi – I haven’t seen anything on your blog about social security. Just giving you some food for thought. I believe in the Constitution of the United States and being an advocate of the 1st Amendment, I find this blog invaluable and informational.

    Except for the contempt prior to investigation.

    Again, my conference call invite or live broadcast invitation with you remains open.

    I truly wish you the best. I have had some of the same issues in the Civil Rights arena that I would “speculate” on until the justice system made it absolute.

    When I go to sleep at night, I think of two things: “Have I helped someone have a great day” and “tomorrow will I be fair and balanced like FOX NEWS.”

    Donald W.R. Allen,II Editor in Chief of IBNN and USA Radical Black.com
    also the VP/Director of PR for V-Newswire and the V-News Network.

    Power to the People…Now!

  • ***********************************************************************************

  • Don Allen is Editor-in-Chief, www.ibnn.org and also VP/Director of PR for V-Newswire & V-News Network, and a really fine guy too!

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    My biggest concern is the impact that the illegal siezure has had on thousands of lives throughout the world.   It seems to have become the mentality of the U.S. Government that they have a God-given right to meddle in the lives of people all over the world.  Why doesn’t our Government instead start focusing it efforts on cleaning up its own corruption, fiscal irresponsibility, and Ponzi Schemes of its own making?  If our Government will start doing the right thing, I dare say that the people of the USA will follow suit by also doing the right thing.  How about our Government starting to lead by example instead of by brute force and unyielding power-plays.

    Being abroad in India at this time, make no mistake about this.  People around the world are laughing –  no, not always laughing  –  sometimes they are crying and dying because of the tyranny of our Government.  Quite frankly, over here right now, I feel like a man without a country!  Currently, while visiting in India, we are spending some time with an iNetGlobal representative who has a wife and an 8-year old son.  Our purpose for being here is to assist him in his recent move from the USA to India.  He has worked and organized for months to become established as an iNetGlobal representative.  He has become profoundly adept at using the products that iNetGlobal offers, and he is here in India now to teach others the same opportunity.  Fellow Indians, I am told, are trying to avail themselves of the same opportunity by learning to use the powerful products and advertising tools offered by iNetGlobal.  My friend is working diligently in India to do all things legal.  He has met with Chartered Accountants, with Bankers, and with Attorneys to make sure that he complies in all due respect with Indian laws as he works to successfully build his business, and teach others in India to do the same.  In the middle of all of this, we get news from home about the malicious acts of the U.S. Government and its raid on iNetGlobal.  If the U.S. Government has a bone to pick with Steve Renner, I dare say that Steve Renner also has a major bone to pick with the U.S. Government.  Nothing constructive resulted from raiding iNetGlobal.  People are working there, and all over the world, –  working to make a better life for themselves and build another successful U.S. Company.  It sickens me to see how the illegal raid and seizure on iNetGlobal has impacted our friend’s life.  And he is only one of thousands and thousands throughout the world.

    Just think about it.  This is just one small company –  impacting thousands of people.  And there are thousands of companies, also impacting thousands of people –  being repressed by a runaway power-hungry system in the USA.  It is time that the American people wake up to what is going on.  If you wonder why there is a Tea Party growing movement, this is one small example why.  Quite a few million of us have, in fact, woke up, and we are about the business of stopping this corruption, this government power-grab, this incessant meddling in our freedoms.  We are on a roll, and you cannot stop us.  The entire globe is learning about your dangerous shenanigans, Uncle Sam.  You, U.S. Government, are a shame.  Being 67 years old, what are you going to do with me?  Throw me in the Gulag?? 

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